Government has recognised the value of decentralised energy and has clear commitments to growing the industry in the years ahead. From the Industrial and Clean Growth Strategies, to the National Infrastructure Assessment, the solutions our members provide are front and centre with increasing recognition across the energy system that decentralised energy is central to the UK’s successful energy system transition.
Through our work with Government and other key bodies, the Association for Decentralised Energy provides an influential voice for its members.
We are the leading decentralised energy advocate. We are shaping the debate and influencing policy around the UK's transition to a more cost effective, efficient and user-led energy system.
Our recent policy achievements include:
Industrial and commercial (CHP)
- Protecting users from facing network charges on total on-site demand (including any met by on-site generation) – an option that could have cost large users approximately £1,380/MWh in residual network charges and likely required extensive new metering.
- Securing the Industrial Energy Transformation Fund to support energy efficiency and decarbonisation in industry. This Fund will invest £315m over the next five years and we are engaging with Government to ensure that the finalised design recognises the important contribution of industrial combined heat and power (CHP).
- Protecting users from paying more for connections through our role on Ofgem’s Charging Futures Forum taskforces – by preventing the introduction of auctions for new electricity network connections for both generation and demand.
- Ensuring Ofgem takes forward a reduction in theupfront cost of connections to the distribution networks in their reforms to network charging - a key barrier to greater investment in decentralised energy.
Demand side services
- Ensuring members have equal access to the pan-European energy market created under Project TERRE by helping to create a bespoke access mechanism for demand response and distributed generation.
- Securing member access to the £350m/year Balancing Mechanism for flexibility providers via the Independent Access route.
- Securing rule changes that give members greater flexibility in meeting their Capacity Market obligations by allowing them to replace components within their portfolios to ensure reliable performance.
- Enabling greater ability for energy users to participate in Firm Frequency Response (FFR) through shorter procurement schedules. This allows flexibility providers to make money by offering grid balancing services close to real time.
- Making it easier for new sites to access FFR market by securing agreement from National Grid to reform their testing procedures which should allow testing to be conducted in real-world conditions with fewer interruptions to production schedules.
- Securing power for members to influence the rules of the Balancing and Settlement Code, facilitating innovative business models and customer offerings.
- Launching the DSR Code of Conduct, ‘FlexAssure’,to ensure customer protection and safeguard market reputation.
- Supporting the robust implementation of Minimum Energy Efficiency Standards (MEES) for buildings in the Private Rented Sector (PRS) through research and stakeholder engagement to ensure the Standards drive increased energy efficiency investment.
- Securing an increase to obligations under the MEES regulations, increasing investment likely to flowfrom these regulations.
- Publishing ‘Energising Greater Manchester’,enabling engagement with the Greater Manchester Combined Authority as it develops policies and programmes to deliver low carbon ambitions.
- Working with other stakeholders in the Energy Efficiency Infrastructure Group to secure a call from the National Infrastructure Commission for a step change in energy efficiency installations
(from 9,000 today to 21,000 per week by 2020) and a £3.8bn social housing energy efficiency programme.
- Helping the Greater London Authority develop its evidence base to support increased action to reduce commercial carbon emissions and recommended city-wide policy activity. Improved understanding of the policy changes needed to ensure disabled people and low-income families are helped by energy efficiency policy through research work with the Department of Social Policy and Social Work at York University.
- Securing heat networks in Government’s mind as a central part of the decarbonisation agenda,
continuing to set the tone of the conversation around the potential of heat networks and the heat network market.
- Demonstrating to key stakeholders in the Competition and Markets Authority (CMA), and GB and Scottish governments how the Heat Network Task Force’s recommendation of regulation will drive down risk and ensure excellent customer outcomes, resulting in an announcement of plans to regulate themarket.
- Ensuring the market remains open to innovation and all business models by securing a positive CMA market study result, resulting in less restrictive recommendations and no referral to a market investigation.
- Succeeding in securing Government support to regulate the heat network market, one of the key recommendations of the Heat Network Task Force.
- Forming the Heat Network Industry Council (HNIC), supported by Government, to engage on behalf of industry to demonstrate the long-term value of the heat network market.
- Protecting the £320m Heat Networks Investment Project (HNIP) funding pot in a challenging economic climate.
- Keeping business rates reform on the table despite pressure from HM Treasury, allowing time to provide additional evidence and support for change so that heat networks are treated comparably to other utilities.